Increased production from Canadian and U.S. producers means that more pipelines, rail infrastructure, and marine infrastructure are.

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1 Oil and Gas

2 The face of the oil and gas industry is changing. Growth in the transportation and industrial sectors drives increased global energy demand, while the sources of supply to meet the demand are evolving. Now, alternative sources such as heavy oil, oil sands, oil shale, gas-to-liquids (GTL), and coal-to-liquids (CTL) are pursued, and technologies are key to tapping these alternatives profitably and sustainably. Increased production from Canadian and U.S. producers means that more pipelines, rail infrastructure, and marine infrastructure are needed. An abundance of gas production in North America has reduced the profitability of natural gas and led to a significant interest in gas monetization opportunities like GTL and liquefied natural gas (LNG). The need to maximize production economically and sustainably frames the industry s outlook. Numerous strategies and technological innovations are being explored to decrease capital and operating costs, maintain operational integrity, and minimize environmental impacts. Surmont Phase I SAGD comercial project in Alberta, Canada 2 Hatch Energy

3 Hatch in the oil and gas industry Hatch has been in the oil and gas industry for decades, and continues to provide innovative, value-adding solutions. We are committed to helping our clients achieve unprecedented and sustained business results. Our portfolio spans conventional and unconventional, upstream and downstream sectors. We are 10,000 people strong, and use these resources to provide end-to-end services to our oil and gas clients, including engineering, procurement, construction management, commissioning, operational services, systems and process control, consulting, technology development, and specialty services. We are located in 65 offices worldwide, and can draw on these resources no matter where a project is located. We have global engineering centers in India, China, Indonesia, and South Africa, which provide us access to a large number of high-value skilled resources to deliver projects according to our client s cost and schedule requirements. We currently have $35 billion in projects under management. End-to-end services As consulting engineers, Hatch can not only provide end-to-end services from design to operational services and everything in between, but we can also provide specialized consulting services that add value and maximize project efficiency and operation: Process design, simulations, and optimization services Extensive expertise in front-end technology evaluation and feasibility studies Well versed in latest technologies and established relationships with licensors Energy management services Integrated water management (raw water to effluent or tailings) Environmental services Management consulting. Oil Upgrading and refining Mineable oil sands In situ oil sands Oil shale Enhanced oil recovery (EOR) Production/field facilities Gas Gas processing Gas to liquids (GTL) Coal to liquids (CTL) Gas to power Liquefied natural gas (LNG) Oil & Gas Infrastructure Pipelines Storage and loading terminals Materials handling Power generation Oil and Gas 3

4 Oil projects Fort Hills Ore Processing Plant Petro-Canada Oil Sands Inc., Canada Hatch completed front-end engineering design (FEED) for Phase 1 of this complex project, a Class III cost estimate, and a stage gate review for the ore preparation plant (OPP). The scope was to develop the bitumen production plant to produce approximately 165,000 bbl of bitumen feed to the upgrader. Other services covered the review and validation of the design basis memorandum (DBM), and design of the slurry preparation plant and slurry pump buildings, electrical house, surge facility, all in-plant roads, mechanically stabilized earth wall, and draining system. Hatch also completed pilot plant development, design and sizing of conveyors, preparation of the request for qualification packages, and issued purchase orders for all long-lead items. Prefeasibility studies for Phase 2 were also completed. Horizon Sulfur Recovery Plant Canadian Natural Resources Ltd., Canada The Horizon oil sands project is located 70 km north of Fort McMurray and is owned by Canadian Natural Resources Limited. Together with joint venture partners Kiewit Construction and Worley Parsons, our work under the engineering, procurement, and construction contract for the sulfur recovery plant included process, civil, piping, electrical, instrumentation and controls, design, and commissioning for the sulfur degassing unit, as well as procurement for buildings, and foundation design for numerous processing units including the tail gas incinerator and flare facilities. The sulfur recovery system has enhanced bitumen upgrading to produce a range of marketable petroleum fractions for synthetic crude oil production. Fort Hills ore preparation plant, early construction works 4 Hatch Energy

5 When built the Kitimat Clean Refinery project will be the largest and greenest refinery in the world Kitimat Clean Refinery Project Kitimat Clean Inc., Canada Hatch completed a feasibility study for Kitimat Clean Inc. s new state-of-the-art GTL integrated refinery in Kitimat, British Columbia. The refinery was designed to process 550,000 barrels per day (bpd) of diluted bitumen, and when built will be the largest and greenest refinery in the world. environmental impact and optimizing the revenue. Hatch leveraged in-depth expertise in refining and GTL technologies on this project. The refinery was designed with zero coke and fuel-oil production, minimal water intake, and zero water disposal by integrating it with GTL technology. A key challenge in this project was designing Further, novel technologies were employed to a refinery that will process the Alberta bitumen minimize emissions of nitrogen oxides (NO X ), (extra-heavy oil with 8 to 10 API gravity) to sulfur oxides (SO X ) and carbon dioxide (CO 2 ). The produce products such as ultra-low sulfur diesel CO 2 emissions per barrel are among the lowest for and superior gasoline, while minimizing the any refinery processing heavy crude. Oil and Gas 5

6 Gorgon LNG Project, Barrow Island in Western Australia Model of a typical GTL plant developed by Hatch 6 Hatch Energy

7 Gas projects Chevron-operated Gorgon Project Western Australia The Gorgon Project is the largest single resource development in Australia s history, developing the Gorgon and Jansz-Io gas fields, located between 130 and 200 km off the north-west coast of Western Australia. Hatch is a participant in the Kellogg Joint Venture Gorgon (KJVG), a joint venture between KBR, JGC, Hatch, and Clough. KJVG is the Gorgon Project s downstream engineering, procurement, and construction management contractor. The greenfield development, based on Barrow Island, consists of three 5.2 million tonnes per annum (Mtpa) LNG trains, a domestic gas plant, and product storage and offloading facilities. At peak more than 800 people at the peak period from Hatch were involved in the project. We have been involved from the FEED phase in 2004 to the EPCM phase starting in 2009, in the project planning and execution, balance-of-plant infrastructure engineering, procurement, quarantine management, quality management, logistics, and supporting services. Due to the limited construction footprint on Barrow Island, the project adopted a modular construction and execution strategy. Fabrication yards in Asia were utilized to support the delivery of modules, with the largest being 6,300 tonnes in shipping weight. Western Canadian GTL Project Confidential Client Hatch performed a feasibility and DBM study for a 15,000 bpd GTL facility in Western Canada. The project aims to add value to the client s natural gas resources by converting natural gas to liquid products such as diesel and naphtha. Hatch conducted the scoping studies, followed by a conceptual study involving multiple GTL technology licensors. A wide range of gas monetization options were evaluated (including non-gtl) and systematically reduced to a selected number of GTL technology options for detailed evaluation during the DBM phase. Hatch incorporated its expertise related to modular construction, project execution, and environmental permitting in Western Canada to improve the viability of the project. A market study and economic model was also developed to determine the feasibility of the project and to aid in technology and site selection. Further, during the DBM phase, Hatch provided environmental permitting support, developed the overall project execution strategy, conducted technical and non-technical risk analyses, and developed site-specific 3D models for two technology options. Barrow Island is not only a remote location, but also a Class A Nature Reserve with 24 endemic species. The project must fulfill the highest standards of environmental management and for that reason, a comprehensive quarantine management system is in place to protect the island s unique flora and fauna and the marine environment surrounding the island. The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (0.417 percent). Oil and Gas 7

8 Oil & gas infrastructure projects North American Terminal Operations (NATO) Canexus Corporation, Canada The Canexus NATO terminal is the largest rail loading facility built to date in Alberta. Hatch provided full range EPCM services and commissioning support for the dilbit storage and railcar loading facilities (with up to 24 railcars loading simultaneously). The project included diluent railcar unloading, storage and truck loading, segregated product trans-loading to railcars including intermediate storage, diluent recovery unit, cavern storage and hydrochloric acid transloading and storage facilities. The project was delivered on a very aggressive schedule, while meeting strict quality and safety guidelines. North Montney Mainline Project TransCanada, Canada TransCanada s Montney Mainline is a 300 km long, 42" to 48" nominal pipe size natural gas line in the Peace River Regional District of British Columbia. We provided FEED through execution services for the project, including routing and workspace reviews, stress analysis, geohazard engineering, five major HDD/trenchless crossings, regulatory and engineering support during construction, and post-construction services. Our in-depth knowledge in pipeline, geotechnical, and trenchless engineering provided significant project execution and cost benefits. Excellent performance on initial assignments set the stage for additional engineering services for the ongoing project. The remote location, mountainous terrain, and geotechnical conditions presented some key challenges such as slope stability issues, identifying and mitigating unknown geotechnical hazard and construction risks, and developing the design of several water crossings amongst steep embankments. Consideration had to be made throughout the design to incorporate the impacts from the eventual addition of a BC Hydro dam in the area. Habshan Sulfur Granulation Project GASCO, United Arab Emirates Hatch s bulk materials handling group was tasked with the detailed engineering phase of this granulated sulfur production, storage, and train loadout project. Unique aspects included a 180,000 tonne covered storage stockpile having two stacker-reclaimers interfacing between the 500-tonne per hour (tph) and 700 tph production rate and the daily loadout of an 11,000 t capacity unit train. A custom stock pile management philosophy was developed to eliminate shelf life issues for sulfur lying in storage. Unique measures were required for handling the friable sulfur granules and to mitigate fire hazard concerns. Seven conveyors, a transfer tower, a 1,000 t surge bin and an automated 4,000 tph rail-car loadout facility were required along with five wet dust collection/scrubber towers. The materials handling system employed numerous automation strategies to ensure the effectiveness of the hotspare redundancy provisions. 8 Hatch Energy

9 Habshan Sulfur Granulation Project United Arab Emirates Oil and Gas 9

10 Technologies We recognize the challenges that oil and gas producers face in today s market, and use innovative technologies and processes to maximize revenue for our clients. Since its inception, Hatch has made its mark as a leading technology developer and is actively involved in research and development. We have worked extensively on technology development with various clients, helping from concept to commercialization in areas such as oil sands, oil shale, syngas generation, Fischer Tropsch reactors, upgrading or refining, and gasification. We have developed complex designs to support advancement of oil shale processing technologies and have also been at the forefront of evaluation and commercialization of GTL technologies. In oil sands, we are actively involved in pursuing cost reduction solutions and developing emerging technologies for tailings management. Our strong background in the mining industry also helps us deliver value-added solutions for oil sands developments. One of our most significant impacts in oil and gas technologies is as a partner in Nsolv, a new in situ process for bitumen extraction. It uses zero process water, has 80% lower greenhouse gas emissions, uses 75 80% less energy, and and significantly less CAPEX than the incumbent steam-assisted gravity drainage (SAGD) technology. Inherent in the process is a partial upgrading feature, producing lighter, cleaner oil that requires less diluent for transport and enables 20% more pipeline capacity. Nsolv pilot facility near Fort McMurray, Alberta, Canada 10 Hatch Energy

11 Specialized services As a company involved in the energy, mining and metals, and infrastructure sectors, Hatch is home to specialists in many different areas that can help to optimize projects, maximize profits, and reduce risk. Some of these specialty areas that are relevant to oil and gas projects include: Operational Support Changing market conditions, an uncertain global economy, and shareholder demands are driving organizations to achieve more and more with their existing assets. For companies in the oil and gas sectors, this means a continual focus on cost, competitiveness, profitability, and the sustainability of their asset portfolio. Hatch brings a unique blend of process expertise, operational understanding, and project delivery excellence to our client s most difficult problems. We provide full operational support services, including operational readiness (strategies and plans from study phase to execution, including commissioning and start-up), asset management (stable reliable equipment, specialist inspections, production, and maintenance support), performance enhancement, and sustaining capital projects and engineering. Specialized Engineering Analysis & Design (SEAD) For over 20 years, Hatch s SEAD group has provided in-house capabilities in a variety of advanced analysis techniques, including computational fluid dynamics (CFD) and heat transfer, structural mechanics (finite element analysis), particulate modeling (discrete element modeling), and more. Simulations have been used to solve problems and add value in all project phases, from design to operational support. A broad range of expertise in an integrated team ensures that no problem is too complex. Systems and Process Control (S&PC) We have technical experts in virtually all aspects of operational systems, from instrumentation to control infrastructure, process, and production, through to enterprise resource planning and business systems. Our integrated approach model covers a full range of expertise from sensors, valves, and actuators to DCS-PLC and real-time supervision (SCADA), through to systems such as Production Information (PIMS), Laboratory/QA/ QC Information Systems (LIMS), Manufacturing Execution Systems (MES), Historian, and tie-ins to Business Systems (ERP). Reliability, Availability, and Maintainability (RAM) Modeling Hatch couples simulation and process expertise with operational insight to carry out RAM modeling, which allows us to quantify the effect of equipment interactions, storage capacity, and process variability, and realize significant cost savings from optimization of equipment capacity and configuration. RAM modeling also enables us to achieve target throughput and reliability for new designs and expansions, and debottleneck existing operations. Oil and Gas 11

12 Hatch is an employee-owned, multidisciplinary professional services firm that delivers a comprehensive array of technical and strategic services, including consulting, information technology, engineering, process development, and project and construction management to the Mining, Metallurgical, Energy, and Infrastructure sectors. Hatch has served clients for over six decades with corporate roots extending over 100 years and has project experience in more than 150 countries around the world. With over 10,000 people in over 65 offices, the firm has more than $35 billion in projects currently under management. Contact Sanjiv Save Managing Director, Oil & Gas Hydrocarbon Processing Canada ssave@hatch.ca This publication contains information in summary form, current as of the date of publication, and is intended for general guidance only. We make no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Hatch Ltd. excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising therefrom. This publication is the copyrighted property of Hatch Ltd All rights reserved.